20250228AVU to Staff 5 Attachment A - 2024 ID 2nd Qtr - Combined.pdf

Office of the Secretary
Service Date
April 1,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-23-16
OF AVISTA CORPORATION,D/B/A/ )
AVISTA UTILITIES,REQUESTING )
AUTHORITY TO ESTABLISH TARIFF ) ORDER NO. 36125
SCHEDULE 23 FOR DIRECT CURRENT )
FAST CHARGING(DCFC) OF ELECTRIC )
VEHICLES )
On November 3,2023,Avista Corporation,doing business as Avista Utilities("Company")
applied to the Idaho Public Utilities Commission("Commission")requesting authority to establish
electric tariff Schedule 23, "Direct Current Fast Charging ("DCFC") Rate Option" ("Schedule
23").
The Commission now issues this Order establishing the Company's proposed Schedule 23
as a pilot as described below.
THE APPLICATION
The Company proposes a new optional commercial electrical vehicle("EV")rate schedule
primarily to address the significant market barrier associated with high variable demand charges
in existing rates. Application at 6. The Company represents that the EV rate schedule for general
service Schedule 23 customers will encourage greater investment in public DCFC, while also
continuing to recover utility costs through a higher per kilowatt-hour("kWh") charge.Id.
The Company proposes optional commercial EV rate Schedule 23 for DCFC charging
general commercial service.Id. In addition to the fixed demand charge, the Company proposes to
increase the per kWh charge and eliminate the variable demand charge for this new rate schedule.
Id. at 7. The Company submitted the table below with details comparing the existing Schedule 21
base rates and the proposed Schedule 23 DCFC base rates.
Table No. 2—Schedule 21 and 23 Base Rate Comparison
Monthly Bill Component Schedule 023 Schedule 021
Fixed demand charge $ 500.00 $ 500.00
Demand charge over 50 kw $ 0.00 $ 6.50
First 250,000 kWh $ 0.08509 $ 0.07135
Over 250,000 kWh $ 0.07386 $ 0.06012
ORDER NO. 36125 1

Id. at 7.
The Company represents that the full calculations of the proposed rates for Schedule 23
have been provided as workpapers with the Application, and that commercial EV rate Schedule
23 will be subject to the same adder schedules (DSM, PCA,FCA, etc.)and miscellaneous charges
consistent with existing Schedule 21.Id. at 7-8.
The Company states that the proposed rates provide reasonable recovery of utility costs
based on a simple flat rate for energy charges, while eliminating demand charges that currently
inhibit market growth. Id. at 8. The Company represents that a relatively small number of
customers are expected to adopt this optional rate schedule over the next few years; however, the
Company believes that it may still be effective in removing a key market barrier to early adoption,
while also providing a means to acquire utilization and cost data to inform revisions to the
commercial EV rate schedules in the future.Id. at 9.
STAFF COMMENTS
Staff reviewed the Company's proposed Schedule 23 and identified two specific issues: (1)
the Company did not provide a reliable cost-of-service analysis due to insufficient customer usage
data making it impossible to know if the proposed rates are cost-based, and (2) the rates as
proposed are not revenue neutral.
Staff reviewed the Company's current Schedules for its Idaho and Washington service
territories, and Staff evaluated the need for an Idaho specific DCFC schedule in the Company's
Idaho service territory. While Staff does not agree with the proposed rate design for Schedule 23
or the Company's justification on market transformation, Staff believes it is necessary to
sustainably manage EV load growth on the system in the future.
Staff understands that the current operational costs of DCFC stations are not financially
sustainable given the current schedules these customers are on, and that an alternative rate design
could address some of these issues. However, given the small number of customers expected to
use this schedule and a lack of data to support the need for a separate class, Staff is unable to justify
a need for a DCFC specific customer class at this time.
Staff recommends that the Commission deny the request to implement the proposed DCFC
tariff Schedule 23. Staff recommends that the Company consider revisiting adding an additional
DCFC tariff in a future general rate case. If the Company chooses to revisit the DCFC tariff, the
Company should provide the Commission with Class Cost-of-Service analysis, a cost-based rate
ORDER NO. 36125 2

design, a system load forecast for DCFC stations on the Company's Idaho system, and more data
on DCFC load characteristics to justify the need for a separate rate class.
PUBLIC COMMENTS
The Commission received four public comments in support of the proposed Schedule 23.
The comments note the current high operating expenses under Schedule 11 and believe the
proposed Schedule 23 would reduce the financial burden on DCFC customers and provide benefits
for Idaho's EV market moving forward.
COMPANY REPLY COMMENTS
The Company believes there is a need for such a DCFC tariff currently,and the Company's
intention in filing this case is to take a small step forward in supporting transportation
electrification in Idaho. The Company believes that without some support for DCFC in the form
of the Company's filing, Idaho will lag in electric vehicle adoption. However, should the
Commission choose not to approve the Company's Application, the Company agrees with Staff
that, if it chooses to pursue a tariff for DCFC down the road, it would do so in a general rate case.
COMMISSION DECISION AND FINDINGS
The Commission has jurisdiction over this matter under Idaho Code §§ 61-502 and 61-
503. The Commission is empowered to investigate rates, charges,rules,regulations,practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and 61-503. The Commission has reviewed the record and based on our review we find
it reasonable to approve the Company's proposed Schedule 23—DCFC Rate Option as a pilot.
Having reviewed the record we find that we need additional information to determine
whether Schedule 23 becomes permanent. Primarily we need information to determine if Schedule
23 is revenue neutral and no costs are shifted to other customer classes. Rates should be based on
cost-of-service which will ensure Schedule 23 customers are paying the appropriate rates.
Accordingly, Schedule 23 will operate as a pilot until the Company's next general rate case when
rates can be established based on cost-of-service or until this Commission otherwise issues an
order making Schedule 23 permanent or modifying or terminating the schedule.
While Schedule 23 rates for the pilot program will initially be based on the Company's
proposed rates, the Company shall notify customers that rates are subject to change at any time—
even prior to the next general rate case. The Company shall also submit a semi-annual report to
the Commission that provides details of the number of customers taking service under Schedule
ORDER NO. 36125 3

23,notating customer growth or loss, and the total kWhs consumed by the class. This initial report
shall be due by August 30, 2024.
ORDER
IT IS HEREBY ORDERED that effective April 1,2024, Schedule 23 is approved as a pilot
until the next general rate case or until the Commission enters an order making this schedule
permanent or modifying or terminating Schedule 23. The Company shall submit a compliance
filing updating its Schedule 23 consistent with this Order by April 15, 2024.
IT IS FURTHER ORDERED that the Company is directed to submit a semi-annual report
including details about customer growth or loss, and the total kWhs consumed by Schedule 23
customers with the initial report due on or before August 30, 2024.
IT IS FURTHER ORDERED that the Company shall notify Schedule 23 customers that
rates are subject to change.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this lst day of
April 2024.
ERIC ANDERSON, PRESIDENT
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OHN R. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, MISSIONER
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Commission Secretary
IALega1\ELECT1UC\AV U-E-23-16_DCFC\orders\AV UE2316_fml_dh.docx
ORDER NO. 36125 4

Office of the Secretary
Service Date
April 3,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-23-12
CORPORATION'S APPLICATION TO )
UPDATE AND ESTABLISH ITS CAPACITY )
DEFICIENCY PERIOD TO BE USED FOR ) ORDER NO. 36127
AVOIDED COST CALCULATIONS )
On August 24, 2023, pursuant to Order No. 35810, Avista Corporation d/b/a Avista
Utilities ("Company") applied to the Commission for approval of its capacity deficiency period
used for its avoided cost calculations ("Application").
On January 11, 2024, the Commission issued Order No. 36056 approving the Company's
Application subject to a compliance filing. Specifically, the Order required the Company to use
the Traditional Method to determine the Load and Resource Balance ("L&R") with the most
current peak load forecasts for both winter and summer. In addition, the Commission directed the
Company, before the next capacity deficiency update, to show that the method used to derive the
Company's Qualified Capacity Contribution("QCC")values reflect the generation capacity of the
Company's resources relative to the peak loads within the Company's system and to develop its
Planning Reserve Margin("PRM") "driven by the Company's reliability target and appropriately
developed capacity contribution factors [within its] system." Order No. 36056 at 7.
On January 31,2024,the Company submitted a compliance filing containing a more recent
load forecast, and an updated L&R using the Company's traditional method with the most current
peak load forecasts for both winter and summer. The Company also stated that it "will work on
demonstrating the other two issues regarding the Company's QCC and PRM values for use in its
2025 IRP process and subsequent capacity deficiency filing."January 31,2024,Compliance Filing
at 3.
After further review of its previously filed load forecast,the Company filed a supplemental
compliance filing("Updated Compliance Filing")on February 5,2024,modifying its load forecast
to reflect inclusion of delivery losses,removal of the impact of net metered solar generation on the
winter peak load forecast, and removal of the impact of cooling load shapes on the winter peak
load forecast.
ORDER NO. 36127 1

After review of the Updated Compliance Filing, Staff believed that the updated load
forecast complied with Order No. 36056.Using the L&R and a capacity deficiency period of 2033
that resulted from the updated load forecast, Staff sent a letter to the Company on February 14,
2024,requesting verification of the updated"Surrogate Avoided Resource("SAR")Model and re-
calculated avoided cost rates for new contracts to reflect the new capacity deficit information."
Staff s February 14, 2024, Letter at 2.
On February 20, 2024, the Company filed a correspondence Agreement that agreed with
Staffs update to the SAR model and avoided cost rates.
At the Commission's March 5, 2024, Decision Meeting, Staff presented a Decision
Memorandum which noted that Staff had reviewed the Updated Compliance Filing and
recommended the Commission approve the first capacity deficiency year of 2033 based on the
updated load forecast, the updated SAR model, and resulting published avoided cost rates with an
effective date of January 11, 2024.
The Commission now issues this Order approving the first capacity deficiency year of 2033
based on the updated load forecast, the updated SAR model, and resulting published avoided cost
rates with an effective date of January 11, 2024.
COMMISSION FINDINGS AND DISCUSSION
The Commission has reviewed the record, including the Updated Compliance Filing,
Staff s submissions and recommendations, and the Company's agreement with Staff s
calculations. Based upon its review of the Updated Compliance Filing,the Commission finds that
the resulting capacity deficiency year of 2033 is appropriate for Staff to determine updated
published avoided cost rates. For these reasons, the Commission finds that the Company has
complied with Order No. 36056. Accordingly, the Commission approves the first capacity
deficiency year of 2033 based on the updated load forecast in the Updated Compliance Filing and
the published avoided cost rates and updated SAR Model—with an effective date of January 11,
2024.
ORDER
IT IS HEREBY ORDERED that the first capacity deficiency year of 2033, the updated
SAR model, and resulting published avoided cost rates are approved, based on the updated load
forecast in the Updated Compliance Filing. This approval is effective as of January 11, 2024.
ORDER NO. 36127 2

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3rd day of
April 2024.
ERIC ANDERSON, PRESIDENT
OHN R. HAMMOND JR., COMMISSIONER
G
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EDWARD LOD E, ' MMISSIONER
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ORDER NO. 36127 3

Office of the Secretary
Service Date
April 23,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-23-15
CORPORATION'S AND CLEARWATER )
PAPER CORPORATION'S JOINT PETITION )
FOR APPROVAL OF AMENDMENT NO. 1 ) ORDER NO. 36157
TO POWER PURCHASE AND SALE )
AGREEMENT )
On October 2, 2023, Avista Corporation ("Avista" or "Company") and Clearwater Paper
Corporation("Clearwater")(collectively the"Parties")jointly petitioned for Commission approval
to amend their 2018 Power Purchase and Sale Agreement ("Agreement") to extend the term for
three additional years ("Petition"). These requests were contained in Amendment Nos. 1 and 2 to
the Agreement.
On December 29, 2023, the Commission issued Order No. 36046 approving the
Company's Petition subject to a compliance filing which required the Company to work with Staff
to determine the appropriate rates to be charged between the Parties, in addition to other
modifications.
On January 19, 2024, the Company submitted a compliance filing which was followed by
a corrected compliance filing on that same date. The Company submitted a subsequent compliance
filing on February 2, 2024, (collectively"Compliance Filings").1
At the Commission's February 13, 2024, Decision Meeting, Staff presented a Decision
Memorandum which noted that Staff had reviewed the Company's Compliance Filings and
recommended the Commission issue an Order specifying that the Company had sufficiently—but
not completely—complied with Commission requirements in Order No. 36046.2
COMMISSION FINDINGS AND DISCUSSION
We have reviewed the record and find that the Compliance Filings sufficiently comply with
the Commission's requirements from Order No. 36406. Aside from one remaining error caused by
not using the first capacity deficiency date from when the original Agreement was signed
(December 2026), the Company has complied with this Commission's directives. As noted by
Staff, despite this error, the avoided cost rate paid by Clearwater under the Schedule 25P Block 2
1 The Compliance Filings contained proposed Amendment Nos.3 and 4.
2 The Company did not use the first capacity deficiency date authorized when the original 2018 Agreement was signed.
ORDER NO. 36157 1

Generation Load rate will offset the absence of capacity payments for the one-month period in
December 2026. We agree with Staff that if the Agreement is renewed beyond 2026, capacity
payments should start immediately upon implementation of the renewal contract.
For these reasons, the Commission finds that the Company sufficiently complied with
Order No. 36406. Accordingly, the Commission approves the Company's proposed Amendment
Nos. 1, 2, 3, and 4 to the Agreement, effective as of January 1, 2024.
ORDER
IT IS HEREBY ORDERED that the Company's Agreement, as updated through
Amendment Nos. 1, 2, 3, and 4, is approved effective as of January 1, 2024.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23`d day of
April 2024.
ERIC ANDERSON, PRESIDENT
ri R. HJ R. HAMMOND JR., COMMISSIONER
G
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EDWARD LODG OMMISSIONER
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ORDER NO. 36157 2

Office of the Secretary
Service Date
May 23,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-E-23-16
OF AVISTA CORPORATION,D/B/A/ )
AVISTA UTILITIES,REQUESTING ) ORDER NO. 36184
AUTHORITY TO ESTABLISH TARIFF )
SCHEDULE 23 FOR DIRECT CURRENT )
FAST CHARGING(DCFC) OF ELECTRIC )
VEHICLES )
On November 3, 2023, Avista Corporation, doing business as Avista Utilities
("Company"), filed an application ("Application") with the Idaho Public Utilities Commission
("Commission")requesting authority to establish electric tariff Schedule 23, "Direct Current Fast
Charging ("DCFC") Rate Option."
On April 1, 2024, the Commission issued Order No. 36125 approving Schedule 23 as a
pilot program until the next general rate case or until the Commission enters an order making this
schedule permanent or modifying or terminating Schedule 23, with an effective date of April 1,
2024. The Order also required the Company to submit a compliance filing updating Schedule 23
consistent with the Order by April 15, 2024.
On April 2, 2024, the Company submitted a compliance filing with updated Schedule 23
tariffs. On April 5, 2024, the Company submitted a supplemental compliance filing that added
additional language to the updated Schedule 23 tariffs. These compliance filings were submitted
to comply with Commission Order No. 36125.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's applications and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order.Idaho Code
§§ 61-501 through 503.
Having reviewed the record and all submitted materials, the Commission finds that the
Company's compliance filing on April 2, 2024, and supplemental compliance filing with updated
tariffs on April 5, 2024, comply with the requirements set forth in Order No. 36125.
ORDER NO. 36184 1

ORDER
IT IS HEREBY ORDERED that the Company's compliance filings are accepted, and the
Company's revised tariff sheets submitted on April 5, 2024, are approved with an effective date
of April 1, 2024.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 23rd day of
May 2024.
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ERIC ANDERSON, PRESIDENT
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ORDER NO. 36184 2